New Report Highlights Growing Use of Bonus Programs Across Orgs

WorldatWork Survey finds that 98% of organizations now use some form of bonus program, a significant rise from 93% in 2021.

October 08, 2024

Scottsdale, Arizona  — A new report reveals the increasing prevalence of bonus programs in organizations, with nearly all surveyed companies utilizing at least one type of bonus to enhance employee retention and recruitment efforts. The study tracks the latest trends in sign-on, performance, retention, referral, and spot bonuses, alongside a detailed analysis of how these programs have evolved since 2010.

According to the report, 98% of organizations now use some form of bonus program, a significant rise from 93% in 2021. Of those, 80% reported using sign-on bonuses and 81% reported using performance bonuses, which have become key tools in attracting talent. Retention bonuses, used by 66% of organizations, have grown by 21% compared to pre-pandemic levels. However, only 12% of companies currently measure the effectiveness of their bonus programs, indicating an opportunity for further optimization of these programs.

“Bonus programs have become essential to talent acquisition and retention strategies, especially in today’s competitive market,” said Alicia Scott-Wears, Content Strategy Director at WorldatWork. “We’re seeing companies embrace bonuses not only as a short-term solution but as a core part of their integrated rewards strategies.”

While the popularity of bonus programs continues to grow, fewer organizations are considering adding new bonus types. The proportion of companies exploring additional bonus programs has declined, signaling a trend towards optimizing existing offerings.

“Organizations are finding the right mix of bonus programs that work for their specific needs,” said Liz Supinski, Director of Research & Insights at WorldatWork. “There is a clear shift toward refining and integrating bonus strategies rather than expanding them.” 

About WorldatWork  

WorldatWork is the leading global nonprofit association for professionals engaged in the critically important practice of Total Rewards. We serve those who are responsible for cultivating inspired, engaged, productive, and committed workers in effective and rewarding workplaces. We guide them in the design and delivery of Total Rewards programs with our membership, education, certification, idea exchange, thought leadership, knowledge creation, information sharing, research, and networking. For more than 70 years, WorldatWork has served Total Rewards professionals throughout the world working in organizations of all sizes and structures. Professionals from more than 93% of Fortune 500® organizations rely on WorldatWork for Total Rewards solutions.